American Century Companies Inc. Lowers Stake in Tapestry, Inc. $TPR

Key Points

• American Century Companies Inc. significantly reduced its stake in Tapestry, Inc. (87.2% reduction), selling over 1.4 million shares, while maintaining ownership of approximately 218,400 shares valued at $15.38 million.
• Tapestry recently reported earnings of $1.04 per share for its latest quarter, exceeding expectations, and announced an increase in its quarterly dividend from $0.35 to $0.40 per share.
• Institutional investors hold a substantial portion of Tapestry, with 90.77% of the company’s stock owned by this group, and analysts continue to show a positive outlook with a consensus rating of "Moderate Buy."

American Century Companies Inc. trimmed its holdings in shares of Tapestry, Inc. (NYSE:TPR - Free Report) by 87.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 218,400 shares of the luxury accessories retailer's stock after selling 1,488,564 shares during the period. American Century Companies Inc. owned approximately 0.11% of Tapestry worth $15,378,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in TPR. China Universal Asset Management Co. Ltd. purchased a new position in shares of Tapestry in the 1st quarter worth $1,708,000. Curat Global LLC purchased a new position in shares of Tapestry in the 1st quarter worth $382,000. Nisa Investment Advisors LLC boosted its stake in shares of Tapestry by 16.7% in the 1st quarter. Nisa Investment Advisors LLC now owns 63,342 shares of the luxury accessories retailer's stock worth $4,460,000 after buying an additional 9,049 shares during the last quarter. Allworth Financial LP boosted its stake in shares of Tapestry by 689.0% in the 1st quarter. Allworth Financial LP now owns 13,374 shares of the luxury accessories retailer's stock worth $913,000 after buying an additional 11,679 shares during the last quarter. Finally, Neo Ivy Capital Management purchased a new position in shares of Tapestry in the 1st quarter worth $1,476,000. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Tapestry Trading Up 0.2%

TPR traded up $0.25 on Wednesday, hitting $100.95. The company had a trading volume of 3,668,685 shares, compared to its average volume of 5,275,290. The company has a market cap of $21.01 billion, a PE ratio of 160.23, a PEG ratio of 2.54 and a beta of 1.51. Tapestry, Inc. has a 12-month low of $39.40 and a 12-month high of $114.05. The company has a quick ratio of 1.31, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. The business's fifty day simple moving average is $99.70 and its 200 day simple moving average is $83.98.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 EPS for the quarter, topping the consensus estimate of $1.02 by $0.02. Tapestry had a return on equity of 68.02% and a net margin of 2.61%.The company had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.67 billion. During the same quarter last year, the business posted $0.92 earnings per share. The firm's revenue was up 8.3% on a year-over-year basis. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. Equities research analysts expect that Tapestry, Inc. will post 4.91 EPS for the current year.

Tapestry Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, September 5th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 1.6%. This is a boost from Tapestry's previous quarterly dividend of $0.35. The ex-dividend date is Friday, September 5th. Tapestry's dividend payout ratio (DPR) is presently 222.22%.

Insider Activity

In other Tapestry news, VP Manesh Dadlani sold 7,882 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $99.05, for a total transaction of $780,712.10. Following the completion of the transaction, the vice president owned 21,098 shares in the company, valued at $2,089,756.90. The trade was a 27.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.18% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Evercore ISI dropped their price target on Tapestry from $130.00 to $125.00 and set an "outperform" rating on the stock in a research note on Friday, August 15th. The Goldman Sachs Group raised their target price on Tapestry from $84.00 to $93.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Argus raised their price target on Tapestry from $78.00 to $92.00 and gave the company a "buy" rating in a report on Tuesday, June 17th. Telsey Advisory Group raised their price target on Tapestry from $92.00 to $125.00 and gave the company an "outperform" rating in a report on Monday, August 11th. Finally, Wells Fargo & Company raised their price target on Tapestry from $100.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Seventeen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Tapestry has an average rating of "Moderate Buy" and a consensus price target of $105.47.

Tapestry Company Profile

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags; and women's accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.